What is 'no claim bonus' in health insurance and how to protect it

The no claim bonus feature in health insurance is similar to a free hit in cricket. Like the batter is rewarded for a bowler overstepping their mark in cricket, no claim bonus (NCB) is essentially a thank you from your insurer for not dipping into your health cover during a policy year. The insurance company either a) increases your sum insured (the maximum amount your policy covers) for each claim-free year or b) reduces your renewal premium for each claim-free year. The good and the great NCB features The good NCBs are those where the sum insured grows 50 per cent for every claim-free year, generally capped at a 100 per cent increase. In such cases, a Rs 5 lakh policy could turn into Rs 10 lakh after just two claim-free years. Then, there are also those NCBs where the sum insured grows 10

This article was originally published on November 26, 2024.